The Implementation and the Impact
of the Trade Adjustment Assistance
Extension Act of 2011
January 27, 2012 1-2pm
Lindsay Webb, TAA Coordinator, National Employment Law Project
Ragini Kapadia, Senior Economic Analyst, Working for America Institute
Moderated by Lynn Minick, National Employment Law Project
with Presentations by the IRS Health Coverage Tax Credit Program and
the Minnesota Department of Employment and Economic Development
Findings and Resources on the
Trade Adjustment Assistance
Act
Ragini Kapadia, Senior Economic Analyst,
AFL-CIO Working for America Institute
W W W.TA A H E L P S . O R G
The Working for America Institute
• The AFL-CIO Working for America Institute (WAI) is a
union-sponsored, nonprofit organization dedicated
to creating good jobs and building strong
communities.
• WAI has made significant progress in articulating a
vision of a high road economy—an economy that
competes in today’s global marketplace on the basis
of innovation, quality and skill rather than on low
wages and a lack of benefits.
US DOL Technical Assistance Grant
• 8 State Partners: CA, IN, MA, MI, MN, NY, OH,
PA
• National Partner: NELP
• Technical Assistance to Unions, Employers,
Union-Sponsored Workforce Development
and Dislocated Workers Programs
Challenges
• Workers eligible for TAA do not take full advantage of TAA
retraining and reemployment services
• Lack of awareness and information on TAA that is
accessible and relevant to trade affected workers
• Uncooperative employers who hold up and delay the TAA
petition process
• Consistent guidelines and capacity for state outreach on
TAA
• Disconnect between local unions and resources on TAA
Best Practices
• Enrolling trade affected workers at the earliest date
possible: Case Studies in Pennsylvania
• Coordination and integration of services involving
large regions and multiple jurisdictions: the NUMMI
Case Study in California
• Utilization of social networks and multimedia to
increase awareness on TAA
• Partnerships between employers, unions, and state
workforce agencies.
The Trade Adjustment
Assistance Extension Act of
2011
Lindsay Webb, TAA Coordinator
National Employment Law Project
Trade Adjustment Assistance
• NELP promotes TAA as the best existing dislocated
worker program
– Only TAA provides income support AND training for dislocated
workers
– TAA includes limited health care option—HCTC
• With 2011 reauthorization, substantial TAA
improvements from 2009 were retained:
–
–
–
–
Eligibility for service workers as well as manufacturing workers
Incumbent worker training for “at risk employment.”
Offshoring coverage for shifts to all countries
Retains higher level of spending ($575 M)
The Law that governs TAA
• Most recent TAAEA was signed into law by President Obama on
Oct. 21, 2011
• But it is still referred to as The Trade Act of 1974 (19 U.S.C. §
2271 et seq.) as amended
• This Act Creates 3 distinct program (2002, 2009, 2011)
• Each program has a different sets of rules:
– 20 CFR 617;
– 20 CFR 618
– TEGL 11-02 (2002)
– TEGL 22-08 (2009)
– TEGL 10-11 (2011)
Petition Number Grid
TAA Law
Petition Number
Applicable Date
Election Option
2002 Amendments
Below TA-W-70,000
Before May 18, 2009
NO
2009 Recovery Act
TA-W-70,000 to
TA-W-79,999
May 18, 2009 to
Feb. 14, 2011
NO
2002 “Gap” Program
TA-W-80,000 to
TA-W-80,999
Feb. 14, 2011 to
Oct. 21, 2011
YES
TA-W-81,000
After Oct. 21, 2011
NO
2011 Amendments
Worker Election
• Petitions filed between Feb. 14, 2011 and Oct. 21,
2011 (so-called gap period) are impacted.
– Those petitions (80,000 – 80,999) still under
investigation will be considered under 2011 rules.
– Those petitions denied during this period will be
reconsidered.
• And, workers certified under one of these
petitions who sought TAA services will have an
election between the 2002 Act and the 2011 Act
benefits.
– The election period begins Dec. 20, 2011 and ends
March 19, 2012.
Certification Pointers
• There are two ways to be certified as a
primary certification:
– Shift in production or increase in import
• Shifts in Production
– Must show jobs transferred to any country.
– Prove shift in production through employer admission or
other evidence provided by petitioner
• Increase in Imports
– Must be like or directly competitive
– “contributed importantly” to layoffs
» important cause, but not necessarily more important
than any other cause
Certification Pointers
• However, firms for can be certified as a
secondary certification if:
– They are a direct supplier of component parts to
certified primary firm that accounted for 20% of
production or sales OR loss of business with
primary firm “contributed importantly” to layoffs,
OR
– If they are a Downstream producer providing
additional, value added production directly for
primary firm
TAA Eligibility
Two step TAA eligibility process
• Group Eligibility (by workplace)
– Petition for eligibility with U.S. Labor Department
(3 workers, union, employer, state or local
workforce agency, governor)
• Individual Eligibility (by worker)
– Individual application and processing for certified
workers, often after group orientation
Impact Date
• Under 2002 and 2009 the impact date was
generally a year from the date of certification.
• BUT, under 2011, the impact date is extended
for all certifications filed between October 21,
2011 and the January 19, 2012.
– The new impact date for these certifications is
February 13, 2010.
• So, anyone laid off from that date to 26 weeks after
certification will be covered
Weeks of Income Support Vary by Act
Trade Adjustment Assistance Act
2002
2009
2011
Regular State Benefits
26
26
26
Basic Trade Readjustment Allowance (TRA)
26
26
26
Additional Trade Readjustment Allowance (TRA)
52
78
65
Remedial Trade Readjustment Allowance (TRA)
26
26
---
Completion Trade Readjustment Allowance (TRA)
---
---
13
130
156
130
Maximum Number of Weeks
Note: Trade Adjustment Assistance participants must exhaust regular federal and state unemployment insurance
benefits before starting TRA. The weeks of regular federal and state unemployment insurance benefits count
toward the maximum number of weeks available. For example, in recent years, unemployed workers may have
qualified for up to 99 weeks of federal and state unemployment benefits. Under the 2011 Act, a worker who
received 99 weeks of regular benefits would, at most, be eligible for 31 weeks of TRA for a total of 130 weeks.
[1] Regular State Benefits: Most states offer 26 weeks of regular state benefits.
[2] Basic TRA: Income support available to all TAA-certified workers, even workers on a training waiver. However,
the 2011 Amendments reduce reasons for a waiver.
[3] Additional TRA: Income support available to workers in approved training.
[4] Remedial TRA: Income support for workers in training who requires remedial training.
[5] Completion TRA: Income support for workers in active training and meeting performance benchmarks.
2002 TRA Overview
26 weeks
Unemployment
+
26 weeks
Basic TRA
+
52 weeks
Additional TRA
= 104 weeks
+
26 weeks = 130 weeks
Remedial TRA
TRA Overview
26 weeks
Unemployment
+
104 weeks
= 130 weeks BUT LAST
TRA
Benefits
13 Weeks
Completion of
Degree or
Credential
Completion TRA
• To receive Completion TRA,
– a worker must have exhausted Additional TRA, and
– need completion TRA to finish a degree or industryrecognized credential and
– met and continue to meet the performance benchmarks
established in the approved training plan and
– participate in training in each week he/she receives
Completion TRA
• Training benchmarks are agreed to and initiated at the start of
the training plan and reviewed every 60 days.
• Evaluation criteria:
– Satisfactory academic standing
– On schedule to complete training according to training
plan
Approval of TAA Training
Six Conditions for Approval of TAA Training
• No suitable employment for the worker.
• Worker would benefit from appropriate training.
• Reasonable expectation of employment following
training.
• Training is reasonably available to the worker.
• Worker is qualified to obtain and complete the training,
including having adequate financial resources available to
complete the training when income support is
exhausted.
• The training is suitable and available at a reasonable cost.
Enrollment Deadlines
• Must be enrolled in training OR have a training
waiver by the LATEST of
– the end of the week after the week that is 26 weeks after
TAA certification OR
– the end of the 26th week after the worker’s most recent
total separation from affected employment
• One 45 day extension for “extenuating
circumstances”
• 210 Day Rule—Applies to Additional Tar
• Equitable Tolling—TEGL-08-11
Training Waivers
Dropped after 2011 changes:
• Worker will be recalled reasonably soon; or
• The worker has marketable skills for suitable
employment and a reasonable expectation of
employment in the foreseeable future; or
• The worker is within two years of eligibility for a pension
or social security;
Remaining after 2011 changes:
• The worker is unable to participate in or complete
training due to the health of the worker; or
• Immediate enrollment is not available; or
• No training program is available.
Job Search & Relocation Allowances
No longer considered an entitlement
Subject to state funding availability and preapproval
• Up to $1250 to cover up to
90% of travel and
subsistence costs (2011
change)
• Must be pre-approved, no
local employment available
• Not more than 365 days
after layoff or certification,
or 182 days after
completion of training
• Pays up to 90% of moving
costs and travel to accept
employment outside
normal commuting area
• Must be pre-approved, no
local employment
available
• Pays up to 90% of charges
or maximum of $1250
(2011 change)
• Must apply within 425
days of layoff or
certification, or 182 days
of completion of training
Reemployment TAA
• Must be 50 years or older and separated from TAA
certified employment
• Worker accepts new work by end of 26th week after
layoff or certification, whichever is later
• ATAA pays 50% of difference between the prior wage
and the new wage up to a maximum of $10,000 over
2 years, whichever comes first.
• Annual wage must be less than $50,000
• Electing RTAA no longer cuts off other TAA options,
including part time training
• No separate certification required
Eligibility
Petitions TA-W-69,999 and
below
Petitions TA-W-70,000
through TA-W-79,999
for workers who begin receiving services before Dec. 20, 2011
2002 Law Benefits
2009 Law Benefits
2002 Law Benefits
Manufacturing workers
Manufacturing workers
Manufacturing workers
Petitions TA-W-80,000 to TA-W-80,999
2011 Law Benefits
Petitions TA-W-81,000 and
above
2011 Law Benefits
Manufacturing workers
Service sector workers
Service sector workers
Public sector workers
Workers who have lost
their jobs because their
company’s decline in
production and/or sales
was due to increased
imports or the
outsourcing of jobs to a
country with which the
US has a Free Trade
Agreement
Trade Readjustment
Allowance
Training Waivers
ITC workers (those who
work for a firm that has
been identified by the
International Trade
Commission as in a
domestic industry that
has been injured/is a
party to a market
disruption)
Workers who have lost
their jobs because their
company’s decline in
production and/or sales
was due to increased
imports or outsourcing
to ANY country
Workers who have lost
their jobs because their
company’s decline in
production and/or sales
was due to increased
imports or the
outsourcing of jobs to a
country with which the
US has a Free Trade
Agreement
ITC workers (those who work for a firm that has been
identified by the International Trade Commission as in
a domestic industry that has been injured/is a party to
a market disruption)
Up to 130 weeks available to workers enrolled in fulltime training, the last 13 of which are only available if
needed for completion of a training program and
training benchmarks are met.
Up to 104 weeks
(enrolled in full-time
training) OR
Up to 130 weeks
(enrolled in full-time
training) OR
Up to 104 weeks
(enrolled in full-time
training) OR
Up to 130 weeks
(enrolled in remedial
training)
Up to 156 weeks
(enrolled in remedial
training)
Up to 130 weeks
(enrolled in remedial
training)
8/16 rule applies
26-week rule applies
8/16 rule applies
1. Worker will be recalled to work reasonably soon
2. Worker has marketable skills for suitable employment and a reasonable
expectation of employment in the foreseeable future
3. Worker is within two years of eligibility for a pension or social security
Workers who have lost their jobs because their
company’s decline in production and/or sales was due
to increased imports or outsourcing to ANY country
26-week rule applies
1. Worker is unable to participate in or complete
training due to a health condition
2. No training program is available
3. An enrollment date is not immediately available
4. Worker is unable to participate in or complete training due to health condition
5. No training program is available
6. An enrollment date is not immediately available
Health Coverage Tax Credit
72.5% of qualifying health insurance premium costs
Job Search Allowance
Relocation Allowance
Training Funding
Case Management Funding
Alternative Trade
Adjustment Assistance
(2002)/
Reemployment Trade
Adjustment Assistance
(209/2011)
Petitions TA-W-69,999 and
below
Petitions TA-W-70,000
through TA-W-79,999
for workers who begin receiving services before Dec. 20, 2011
2002 Law Benefits
2009 Law Benefits
2002 Law Benefits
90% of allowable job
search costs up to $1,250
100% of allowable job
search costs up to $1,500
90% of allowable job
search costs up to $1,250
Up to 90% of allowable job search costs, up to a
maximum of $1,250, available at state discretion
90% of allowable
relocation costs, plus
additional lump sum
payment up to $1,250
100% of allowable
relocation costs, plus an
additional lump sum
payment up to $1,500
90% of allowable
relocation costs, plus an
additional lump sum
payment up to $1,250
Up to 90% of allowable relocation costs, plus an
additional lump sum payment of up to $1,250,
available at state discretion
$220 Million
$575 Million
$220 Million
$575 Million
Cap Applies to Training
Funds Only
Cap Applies to Training
Funds Only
Cap Applies to Training
Funds Only
Additional 15% available
for administration.
Additional funds are
available for job search &
relocation allowances.
No funds are available for
case management and
employment services.
Additional 15% available
for administration, and
case management and
employment services. At
least 1/3 of these funds
must be used for case
management and
employment services.
States also receive
$350,000/year for case
management and
employment services.
Additional funds
available for job search
and relocation
allowances.
Additional 15% available
for administration.
Additional funds are
available for job search &
relocation allowances.
No funds are available for
case management and
employment services.
Cap Applies to training, job search & relocation
allowances, case management and employment
services, and associated administration.
Requires separate group
certification
Does not require
separate group
certification
Requires separate group
certification
Available to workers
earning less than an
annual salary of $50,000
Maximum total benefit
of up to $10,000
Training benefit NOT
available
Available to workers
earning less than an
annual salary of $55,000
Maximum total benefit
of up to $12,000
Training benefit is also
available
Petitions TA-W-80,000 to TA-W-80,999
Available to workers
earning less than an
annual salary of $50,000
Maximum total benefit
of up to $10,000
Training benefit NOT
available
2011 Law Benefits
Petitions TA-W-81,000 and
above
2011 Law Benefits
•
No more than 10% of the amount provided may be
spent for administration;
•
No less than 5% or the amount provided may be
spent for case management and employment
services.
•
DOL may recapture from the states funds
remaining unobligated after two or three years and
distribute such funds to states in need of funds.
Does not require separate group certification
Available to workers earning less than an annual salary
of $50,000
Maximum total benefit of up to $10,000
Training benefit is also available
Minnesota’s Approach: TAAEA 2011
Implementation and Impact
January 27, 2012
Debra Schlekewy
Debra.Schlekewy@state.mn.us
What Will We Cover?
• Minnesota’s approach
to TAA
• 2011 Implementation
activities and concerns
• Accomplishments and
challenges
The Minnesota Model of TAA
• Absolute, 100 percent coenrollment with
Dislocated Worker
• Centralized staff (seven)
handle the entire
statewide caseload
• Agency leads petition
process
33
What Does Co-Enrollment Mean?
1. Every person eligible for TAA, is automatically eligible
for Dislocated Worker.
2. Each job seeking customer gets a Dislocated Worker
counselor (in field) and a TAA specialist (in St. Paul).
3. The counselor and specialist work together to ensure
easy service.
4. More resources available for each customer.
34
2011 TAAEA Enactment
• Signed into Law on October
21, 2011
• New program benefits and
services began immediately
• The TAA program
administers three distinct
sets of rules for the 2002,
2009, and 2011 provisions
2011 Implementation activities
• 2011 Choice process
• Waiver changes
• TRA changes
• State’s discretion for job
search and relocation
allowance
• Training Benchmarks
2011TAAEA
Choice/Election
2011
ChoiceProcess
Process
1.
Available to TAA participants covered under an 80,000 series petition and
served under the 2002 program.
2.
Participants can make a one-time choice between 2002 or 2011 program.
2011TAAEA
Choice/Election
2011
ChoiceProcess
Process
1. Is your petition
number between
80,000 and 80,999?
No
Yes
2. As of Dec. 20, 2011, are
you receiving any of the
following benefits or
services?
TRA/ATAA
Payment
No
Training
waiver
Yes
No
Enrolled in training,
participated in
training, or
completed training
If the petition is numbered
81,000 and above or from
80,000-80,999 and the
participants have not received
any benefits, workers
automatically eligible to apply
for 2011 Program benefits and
services (no election required)
No
Been approved for job
search or relocation
allowances (even if
payment has not yet
been made)
Yes
Yes
Yes
Worker can stay on the 2002 Program, or can elect to take advantage of
the benefits and services offered by the 2011 Program. This choice must
be made before March 19, 2012.
Training Waiver Requirement Changes
2002 and 2009 TAA Programs
• Six options:
• Health Condition
• Enrollment in Training
is not Available
• No Training is
Available
• Recall
• Marketable Skills
• Retirement
2011 TAAEA Program
• Three options:
• Health Condition
• Enrollment in
Training is not
Available
• No Training is
Available
2011 TRA changes
• Elimination of Remedial and Prerequisite TRA.
– Remedial and prerequisite training should continue to be part of
an approved training plan where appropriate.
• Addition of Completion TRA
– Provides participants with up to 13 additional weeks of TRA
within a 20 week period in order to complete their training plan.
• Concern:
– Fall and Spring semesters run 17-18 weeks.
– Participants who exhausting Completion TRA before finishing their
training program may be in jeopardy of an overpayment.
40
Maximum TRA Eligible Weeks
2002: 130 potential weeks
–
–
–
–
Up to 26 weeks of Unemployment Insurance
26 weeks of Basic TRA
52 weeks of Additional TRA
26 weeks of Remedial TRA
2009: 156 potential weeks
–
–
–
–
Up to 26 weeks of Unemployment Insurance
26 weeks of Basic TRA
78 weeks of Additional TRA
26 weeks of Remedial/Prerequisite TRA
2011: 130 potential weeks
–
–
–
–
Up to 26 weeks of Unemployment Insurance
26 weeks of Basic TRA
65 weeks of Additional TRA
13 weeks of Completion TRA
Job Search & Relocation Allowances
• 2011 reverts back to 2002 levels, although states will not
receive additional funds to administer these benefits.
• 2011 TAAEA allows states’ discretion to offer workers Job
Search and Relocation Allowance benefits.
• Minnesota will continue to provide these benefits.
• Nine out of ten states in our region have elected to offer
these benefits.
Training Benchmarks
• Two criteria:
• Satisfactory academic standing
• On track to complete training within the agreed upon timeframe
• Reviews conducted at 60 day intervals after training begins.
• Documented in individual plans and signed by participant.
• Encourages intervention and modification of unsuccessful training plans, and
modifications to complete credentials.
• Minnesota is designing a state-wide individual TAA plan through our case
management database.
Accomplishments - Outcomes
Trade Adjustment Assistance (TAA) At-a-Glance Statewide Performance
Program Year 2010 (July 1, 2010 - June 30, 2011)
Served
3,144
Getting a Getting a Keeping a Keeping a
Job
Job
Job
Job
Standard Results Standard
Results
83.0%
87.5%
88.0%
94.8%
Credential
Rate
Standard
62.0%
Credential 2 Qtr Wage 2 Qtr Wage
Rate Results Standard
Results
65.1%
$16,400
$17,619
• TAA regularly meets or exceeds standards
• High performance persists through recent
economic hardships
Accomplishments - Improvements
•
2010 - revised entire
application process
•
2011 - revised purchase order
process
•
2011 - established participant
portal /applytaa
•
2011 and 2012 - clarify case
management model
www.positivelyminnesota.com/applytaa
• One-stop shop for the new TAA customer
• Public site, with only a “side door”
• Will always have the most recent information
on TAA relevant to Minnesota
• We are developing a “Counselor Portal”
Accomplishments –
The Minnesota TAA team was nominated for a 2011 Governor’s
Continuous Improvement award.
Challenges for 2012
1. Train counselors intensively on the clarified case management
model and waiver confusion;
2. Continued implementation the latest TAA law;
3. Integrate and develop new staff;
4. Maintain pace of continuous improvement with initiatives to
enhance customer notification, process payments more quickly, and
integrate with TRA processes.
48
The Health Coverage Tax Credit
Trade Adjustment Assistance Extension Act of 2011
Last Update: December 2011
Question and Answer
For more information:
The National Employment Law Project
www.nelp.org
Lindsay Webb, TAA Coordinator, lwebb@nelp.org
Lynn Minick, Dislocated Worker Specialist, lminick@nelp.org
The Working for America Institute
www.workingforamerica.org
Ragini Kapadia, Sr. Economic Analyst, rkapadia@workingforamerica.org
MN’s Department of Employment and Economic Development
www.positivelyminnesota.com/taa
Debra Schlekewy, Program Coordinator, Debra.Schlekewy@state.mn.us
IRS Health Coverage Tax Credit Stakeholder Engagement
www.irs.gov/hctc
For questions or materials, email: hctc.stakeholder.team@hctc.irs.gov